- LG Electronics’ smartphone business incurred heavy losses in the past five years
- The company is still considering other options for the business
- Development of all new smartphones have been shelved
LG Electronics Inc. may soon close down on its mobile communication business, according to a recent report. This comes after reports stated that the company incurred heavy losses in the smartphone business division (estimated to be around $4.5 billion) in the past five years.
Earlier in January, LG Electronics CEO Kwon Bong-Seok had stated that all options were on the table for the smartphone business. However, things have gone south after negotiations with Germany’s Volkswagen AG and Vietnam’s Vingroup JSC on sale of the loss-incurring business seemed to have also failed.
No lay-offs to be made
CEO Kwon Bong-Seok has assured that there will be no layoffs, although the company is reportedly considering transferring 60 percent of its employees in the smartphone division to other LG units and affiliates.
According to a statement made by an LG official, the company is still “considering all possible measures, including sale, withdrawal and downsizing of the smartphone business”.
LG Electronics has shelved the development of its unique rollable display smartphone along with a planned first-half rollout of all its new smartphones.
